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    Home»Investments»FG task oil firms on global safety standards to attract investments
    Investments

    FG task oil firms on global safety standards to attract investments

    August 20, 20254 Mins Read



    ….as PENGASSAN decry unsafe practices among firms

    Heineken Lokpobiri, Minister of State for Petroleum Resources has urged operators of oil and gas firms in Nigeria to adopt global Health, Safety and Environment (HSE) standards as well as Environmental, Social and Governance (ESG) principles in their operations, as a critical factor needed to attract investments.

    The minister, said this while delivering the keynote address at the 4th Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Energy and Labour Summit (PEALS) held in Abuja on Wednesday.

    Lokpobiri explained that advanced HSE and ESG in workplaces, creates an environment of trust, safety, and accountability. This he said in turn attracts greater investment, because investors place their money where risks are well-managed and governance is strong.

    ” With more investment comes the capacity to upgrade infrastructure, adopt advanced technologies, and expand production. This is the virtuous cycle we are building, one in which PENGASSAN’s commitment to safety, sustainability, and ethics directly fuels national economic growth.

    The Minister added that global oil market volatility, rising environmental expectations, and domestic infrastructure gaps present challenges, but insisted the country possesses the tools, the people, and the vision to overcome them.

    “As we move forward, let us remember that our sector’s challenges are not insurmountable. Yes, global oil markets are volatile. Yes, environmental expectations are rising. Yes, infrastructure gaps exist. But we have the tools, the people, and the vision to overcome them. We have a Government determined to protect all stakeholders. We have PENGASSAN, capable of driving the culture of safety, discipline, and professionalism that our sector requires. And we have a workforce whose talent, once fully harnessed, can position Nigeria as an energy powerhouse,” he said.

    Also speaking, Bayo Ojulari, Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, said resilience in Nigeria’s oil and gas sector is not optional but a national obligation.

    Ojulari stressed that in today’s energy market, companies are judged not only by production output but also by their adherence to ESG values.

    He noted that NNPC is embedding a Zero Harm culture across its operations by implementing an Energy Transition Roadmap, cutting carbon emissions, and investing in gas as Nigeria’s transition fuel.

    On investment, the NNPC boss explained that the Petroleum Industry Act (PIA) has created the framework to transform Nigeria’s investment climate, but warned that policy coherence and stakeholder alignment were essential to de-risk the environment.

    He further outlined NNPC’s plan to grow output through rigorous field development, securing oil and gas infrastructure, and unlocking stranded assets.

    “Every barrel counts. Every molecule of gas counts. Incremental production will not come from one big move, but from many smart, coordinated actions across the value chain,” Ojulari added.

    In his remarks, Festus Osifo, PENGASSAN President decried the persistent unsafe practices in oil installations, warning that operators cutting corners are endangering the lives of workers.

    He noted the disturbing practices in some offshore fields, where human beings were seen using ropes to offload materials from boats, instead of cranes.

    “This is happening in some of the oil and gas installations in Nigeria. Just imagine the cost to human lives. If any of them falls into the waterway, they are gone. Life is truly precious,” Osifo said.

    He recalled the October 24, 2024 helicopter crash around Bonny, which killed three members of the union, stressing that safety in the sector must never be compromised.

    “The true measure of stewardship is ensuring every worker returns home safely. Unsafe conditions must never be the price of resilience,” he declared.

    The labour leader also warned against incessant policy changes in the sector, particularly recent amendments to the Petroleum Industry Act (PIA), which he said have unsettled investors.

    According to him, “Policy summersault and frequent changes to laws do not aid stability. At best, it is a disincentive to investment.”

    On environmental and governance issues, the PENGASSAN boss said gas flaring must end and polluted sites restored, adding that global financial institutions now demand strong Environmental, Social, and Governance (ESG) compliance from oil firms.

    In his remarks, Minister of Labour and Employment, Muhammad Maigari Dingyadi, pledged government’s commitment to workers’ safety, decent wages, and skills development.

    Dingyadi assured that the government would work closely with unions and regulators to raise health, safety, and environment standards.

    “We all know that health and safety are non-negotiable pillars of any resilient energy system. Therefore, advancing our HSE standards Is not optional. The cost of negligence is far greater than the investment in prevention,” the minister said.



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